Acquisitions Anonymous - #1 for business buying, selling and operating

In this discussion, Josh Tonneson, an accounting expert from Tonneson Accounting Services, navigates the complexities of a $23 million acquisition involving a Miami contractor. They delve into the contractor’s impressive $52 million backlog and scrutinize its reported EBITDA versus actual cash flow. Josh highlights potential pitfalls like deferred revenue and WIP accounting traps, while the hosts explore the implications of contract transferability and financing requirements. A treasure trove of insights for anyone in the M&A space!

The hosts dive into a $2.7 million EdTech platform for architects, boasting impressive metrics like $450K revenue and 30% growth. They dissect the business model, highlighting its blend of subscriptions and one-off courses. A lively debate arises over the price valuation, questioning the seller's high asking price compared to fair market value. Discussions on growth opportunities focus on expanding partnerships and leveraging existing content. Ultimately, the hosts express intrigue about the business but caution against the inflated price.

Travis Jamison, founder of Capital Pad and expert in e-commerce, dives into a fascinating $17.5 million electrolyte powder brand. The discussion reveals the brand's remarkable growth from motivational water bottles and examines its impressive 86% gross margins. However, concerns about high customer acquisition costs and dependency on Amazon sales arise. Travis emphasizes the challenges of considering Shopify expansion without jeopardizing Amazon rankings. Insights into ingredient sourcing and the sticky nature of Subscribe & Save customers add depth to this intriguing case study.

Travis Jameson, Founder of CapitalPad, dives into the intriguing world of a $1.9 million indoor pickleball club in Houston. They explore its impressive $400K cash flow potential and multiple revenue streams, including memberships and court rentals. The conversation shifts to whether pickleball is a fleeting trend or a sustainable fitness empire, with discussions on community loyalty, scalability, and financing challenges. Ultimately, they express cautious optimism while weighing the risks of investing in such a capital-intensive venture.

Dive into a potential goldmine with a $4.4M e-commerce business specializing in diabetes patch accessories. Assess the impressive 41% net margin and explore the world of continuous glucose monitors. The hosts analyze the product's market positioning, investigate licensing opportunities, and discuss strategies for U.S. expansion through influencer marketing. They also tackle risks like compliance challenges and financing hurdles, making for an engaging debate on whether this opportunity is a hidden gem or a risky venture.

The hosts critique a $4.28 million asking price for a Signal Security franchise in San Antonio that only generates $773K in revenue. They discuss the challenges of low-skill staffing in security, highlighting liability risks and operational difficulties. The team debunks unreliable franchise rankings and raises concerns over the franchisor's focus on selling rather than service quality. They explore the potential of pivoting to executive security and the impact of technology on traditional guard roles, ultimately agreeing this franchise is not worth the investment.

The hosts analyze a compelling car wash deal in Virginia, listing for around $11 million. They debate whether this high price correlates more with real estate value than operational success. Discussions include labor challenges and the potential for redevelopment. They also explore the intricacies of SBA financing, highlighting how car wash models vary widely in profitability. Additionally, operational demands and environmental concerns add to the complexity of managing such businesses. It's a deep dive into the valuation of unique assets.

This episode analyzes a hurricane shutter business with impressive financials, revealing its $1.3M profit and $1M in backlog. The hosts debate the seller's demand for compensation for work-in-progress and discuss seasonal financial trends. They highlight growth channels through innovative marketing and operational scaling, including remote estimating techniques. Key risks regarding customer contracts and warranties are examined, alongside the competitive landscape and market dynamics driving demand. A riveting exploration of business valuation and acquisition potential unfolds.

Connor Gross, a franchise industry professional and deal source, dives into a profitable mobility solutions franchise with three locations. The discussion highlights the unique services offered, such as stair lifts and ramps, and the diverse revenue streams from project-based sales and rentals. Connor explains the advantages of franchising, including buying power and support. They also explore market trends in aging-in-place solutions, financial evaluations, and the importance of due diligence by speaking to current franchisees. A cautious thumbs-up is given pending more insights.

Dive into the spine-chilling world of ghost-hunting gear with a lucrative e-commerce business up for sale. The hosts discuss intriguing products like EMF detectors and spirit boxes, while dissecting their marketing strategies. They ponder the ethics of selling such items and how to reposition the brand as entertainment. Growth potential through influencer partnerships and engaging content is explored, alongside the feasibility of financing this unique venture. It's a Halloween treat filled with captivating insights on business and the paranormal!